The measure stems from a proposed amendment to the State Budget for 2026 (OE2026), which received approval in the National Assembly on the second day of specific draft voting.
The initiative extends a measure already in effect—originally introduced with the 2025 budget—which would have expired on December 31 if not extended.
Under the IRS Code, autonomous taxations for companies that must pay on IRC for certain expenses (such as undocumented costs or vehicle charges) “are increased by 10 percentage points” when commercial companies show fiscal deficits.
However, the Concertation Social agreement between the government of Luís Montenegro, employer associations, and the UGT on October 1, 2024, included a commitment to apply an exemption to prevent this increase.
Following this, the 2025 budget specified that this applies to companies at the start of their activity.
The conditions outlined for 2026 remain the same as those in force for 2025.
Practically, companies with fiscal deficits will pay autonomous taxation rates in IRC without the legally stipulated increase, provided they had taxable profit in one of the three preceding tax periods, and if the 2026 tax year corresponds to the commencement of activity or one of the two following periods.
